“Less than two months after Apple refreshed its smartphone lineup, investors are once again panicking about whether enough people are buying iPhones,” Seth Fiegerman writes for CNN Business. “Apple’s stock fell 1% Tuesday after tumbling 5% on Monday, shaving off tens of billions of dollars in market value. The stock fell after iPhone parts suppliers Japan Display and Lumentum Holdings cut their sales outlooks. Citing the Lumentum cuts, Goldman Sachs analysts expressed ‘concern’ in an investor note Tuesday that ‘demand for new iPhone models is deteriorating.’ Yet in the very next sentence, the analysts said Apple ‘could easily right itself given the bulk of demand comes in late December.'”
“‘Interpreting data points around demand from the supply chain is a dangerous art,’ Gene Munster, an analyst with Loup Ventures, told CNN Business. ‘Historically, investors have drawn the correct conclusion as many times as the wrong one,'” Fiegerman writes. “Case in point: Apple faced a similar Wall Street panic this spring after one of its key chip suppliers warned of ‘continued weak demand.’ Analysts raised concerns about demand for the $999 iPhone X. Then Apple reported strong earnings results and announced that the iPhone X had become its top selling smartphone.”
“‘The Apple growth story being dead has been greatly exaggerated. We’ve seen this many times over the past few years,’ Daniel Ives, an analyst with Wedbush, tells CNN Business,” Fiegerman writes. “Ross Gerber, an activist investor and CEO of Gerber Kawasaki, says his firm has been tracking China sentiment closely and remains optimistic about Apple’s position there. ‘The Chinese sentiment hasn’t changed toward Apple. They are buying Apple products without any hesitation because of trade issues,’ Gerber says.”
Read more in the full article here.
MacDailyNews Take: Don’t panic. Profit instead.
SEE ALSO:
Apple stock: This is not a repeat of 2015-16 – November 14, 2018
Apple’s Asian suppliers fall on report of canceled iPhone XR production boost – November 6, 2018
Nikkei claims iPhone XR production cuts, Apple stock drops over 3% – November 5, 2018
Apple’s revolutionary iPhone X was the world’s best selling smartphone in Q118 – June 14, 2018
Nikkei again claims ‘weak demand’ for iPhone X despite much evidence to the contrary – February 20, 2018
iPhone X drives smartphone revenue dominance; Apple made more money in Q417 than the rest of the smartphone makers combined – February 16, 2018
Apple iPhone took more than half of worldwide smartphone revenue share in Q417, a new record – February 15, 2018
Apple supplier says report of iPhone X production cuts was overstated – January 30, 2018
Another January, another misleading iPhone supply cuts story from Nikkei – January 29, 2018
Apple stock drops after Nikkei report of iPhone X production cut – January 29, 2018
Canalys: Apple shipped 29 million iPhone X units in Q4 2017; world’s best-selling smartphone over the holiday season – January 23, 2018
Reports of Apple cutting iPhone X orders make no sense – January 2, 2018
Apple stock tumbles on one poorly-sourced report of low iPhone X demand – December 26, 2017
Apple and suppliers shares drop on report of weak iPhone X demand – December 26, 2017
Nikkei: Apple to decrease iPhone production 10% in first quarter of 2017 – December 30, 2016
Nikkei proclaims ‘iPhone 7’ Dead On Arrival; bemoans Apple’s ‘lack of innovation’ – May 12, 2016
Japan’s Nikkei, The Wall Street Journal blow it, get iPhone demand story all wrong – January 16, 2013
Did Apple reduce 4-inch Retina display orders due to improving yields? – January 15, 2013
Analysts: iPhone 5 demand ‘robust;’ ignore the non-news noise – January 15, 2013
Apple iPhone suppliers decline on report orders cut by 50% – January 15, 2013
Apple swoon erases $17 billion from stock market – January 14, 2013
Apple iPhone 5 production cut signaling a new product release? – January 14, 2013
Apple drops to 11-month low on old reports of component cuts – January 14, 2013
The strange math of Apple’s alleged massive iPhone 5 component cuts – January 14, 2013
UBS analysts: Apple iPhone component order reduction ‘old news’ – January 14, 2013
Apple pulls down U.S. futures – January 14, 2013
Apple shares drop below $500 after reported cuts in iPhone 5 parts orders – January 14, 2013
I will buy the next iPhone SE or whatever they call it. An SE with the X treatment, would be 5 inches screen, and big enough for many people .
Right on!
Apple should open their eyes and see the 5 inches market phone as a niche
I guess 5 inches is enough for you…
Apple is fool of sheet!
OMG – the sky is falling. Maybe users are tired of paying Apple’s exorbitant prices!
If you want to complain, at least make it about something real. Have you looked at prices of Samsung’s top line phones… the supposed competitors to the iPhones?
-$46 Hit to the share price in just a month. $46!!
Relentless, wholesale liquidation of AAPL holdings.
Why do you think Apple got rid of the SE and 6 iPhones,so they could force people to buy the expensive iPhones and subsidize the higher cost X’s – money
Huh? This Apple share sell-off isn’t a panic? I think big investors have already panicked. I don’t think I’ve seen Tesla sell off as fast and Tesla has an EPS of -16.x. Apple is an ugly dog as far as Wall Street is concerned.
I do hear market people saying Apple is in good shape, but the big investors must think otherwise unless they’re pulling money out of Apple to cover other losses. As many times as Apple management has said not to rely on component manufacturer sources, nothing ever really changes. No matter what, big investors seem to panic every time. Thanksgiving time is nearly here and Apple shareholders may have nothing to give thanks for unless the bleeding stops, then they can give thanks for that.
I have a gut feeling Apple is going to take the longest to recover out of all the tech stocks. I hope my feelings are completely wrong.
Market Always Panics.. nothing new there..
In the meanwhile, imo, this mostly market freaking out over apple choosing not to report unit numbers of iphone… and all kinds of speculations and fud it has triggers combined with couple rumors.
Market will adjust… and see the bigger pic soon.
In the meanwhile .. lets remember.. they buyback just got a huge discount .. which at the end benefits long term investors.
And also lets remember ( completely overshadowed by panic)
CUPERTINO, California — November 1, 2018 — Apple today announced financial results for its fiscal 2018 fourth quarter ended September 29, 2018. The Company posted quarterly revenue of $62.9 billion, an increase of 20 percent from the year-ago quarter, and quarterly earnings per diluted share of $2.91, up 41 percent. International sales accounted for 61 percent of the quarter’s revenue.
( that is 20% and 40% growth, HUGE …no matter what company, let alone a company Apple’s size )